On the other hand, Hufbauer adds: “The great advantage of bilateral pacts from Trump`s point of view is that the United States, as the big boy on the bloc, will be able to extract more from its bilateral partners than from its multilateral partners. That`s the balance that [Trump] is playing.Â The Dominican Republic-Central American FTR (CAFTA-DR) is a free trade agreement signed between the United States and the small economies of Central America. NAFTA replaced bilateral agreements with Canada and Mexico in 1994. The United States renegotiated NAFTA as part of the agreement between the United States, Mexico and Canada, which entered into force in 2020. It is also important to mention that regional trade agreements are concluded within the framework of multilateral trade agreements, including NAFTA and the European Union. The main organization of multilateral negotiations, agreements and treaties is the WTO. This organization has a unique set of agreements to which all members commit and apply global rules on international trade. The main requirements are the removal of barriers to trade between nations and the assurance that Member States act in accordance with established rules. The General Agreement on Tariffs and Trade (GATT) is the basic multilateral treaty among WTO members (Farm Foundation, 2002, ITCD Online 2004, Carbaugh, 2004).
If negotiations on a multilateral trade agreement remain unsuccessful, many nations will instead negotiate bilateral agreements. However, new agreements often lead to competing agreements between other countries, thus eliminating the benefits of the free trade agreement (FTA) between the two home nations. . . .